Detailed Rationale

CRISIL Ratings has reaffirmed its ‘CRISIL AA/Stable/CRISIL A1+’ ratings on bank facilities and debt instruments of Vedanta Limited (Vedanta).

 

The reaffirmation factors in expectation of robust operating profitability (earnings before interest, tax, depreciation and amortisation {Ebitda}), driven by healthy commodity prices despite moderation from the historical levels reached in the beginning of the year, along with healthy production rates and cost-efficient operations in key business segments. This should result in robust cash accrual to support the ongoing capital expenditure as well as sustain leverage within thresholds.

 

Consolidated Ebitda moderated in the first half of the ongoing fiscal, especially with high energy cost impacting the profitability of the aluminium business along with reduced commodity prices. However, with expected easing of energy prices as domestic coal availability improved following the monsoon along with commissioning of captive mines, healthy production rates and expectation of commodity prices remaining higher than pre-pandemic levels, consolidated Ebitda is expected to improve over the medium term. While Ebitda is likely to moderate this fiscal over the last fiscal, it is likely to remain healthy at Rs 38,000-40,000 crore and is expected at over Rs 40,000 crore in the next fiscal (around Rs 45,000 crore in fiscal 2022). This should aid improvement of free cash flow and return on capital employed over the medium term.

 

Expected moderation in operating profitability and higher-than-expected dividend outflow, along with depreciation in rupee, are likely to result in consolidated net leverage increasing to 2.6-2.7 times this fiscal (~2.2 times in fiscal 2022). However, with likely improvement in operating profitability in the next fiscal and expected utilisation of cash accrual to reduce outstanding consolidated gross and net debt, the net leverage is expected to fall to below 2.5 times in the next fiscal. Slower-than-expected improvement in operating profitability resulting in higher-than-expected consolidated debt and net leverage will be key rating sensitivity factors.

 

The promoters have improved the corporate structure by increasing their shareholding in Vedanta. Between December 2020 and December 2021, they increased their stake to 69.7% from 50.1% through additional debt of nearly USD 2.4 billion. While this has helped reduce dividend payout to minority shareholders and has enhanced overall financial flexibility, it has also increased the consolidated debt. However, improved profitability since fiscal 2022 supported increased dividend since last fiscal. This has helped cut down external debt at Vedanta Resources Ltd (VRL; rated 'B-/Stable' by S&P Global Ratings) to USD 8.9 billion in March 2022 from USD 9.4 billion as of December 2021 and further to ~ USD 7.9 billion as on September 30, 2022 (excluding outstanding inter-company loans of around USD 450 million from Vedanta as on September 30, 2022). While debt reduction at VRL is in line with expectation and supports the financial flexibility of VRL, however with significant rupee depreciation during the fiscal, the said debt reduction at VRL resulted in higher-than-expected dividend outflow, resulting in no material reduction in consolidated gross and net debt.  Additionally, while promoter stake has increased by around 19.5% since December 2020 (resulting in an enhanced corporate structure for Vedanta), CRISIL Ratings understands that the promoters of the company may explore further improvement in the corporate structure of the group. That said, CRISIL Ratings notes the management’s focus on deleveraging, articulated through the capital allocation policy and other public interactions—including the intent to reduce the debt of VRL by around USD 4 billion over the medium term, with principal debt reduction of at least USD 1 billion per annum until fiscal 2025. Thus, consolidated gross and net debt (including the debt at VRL) is expected to reduce going forward and will be a key monitorable. Further updates on actions taken by the promoters to enhance the corporate structure and the consequent impact on leverage will be key rating sensitivity factors.

 

VRL serviced its debt in fiscals 2022 and during YTD-fiscal 2023 through refinancing and dividends. So far in fiscal 2023, Vedanta has announced dividend of more than Rs 25,000 crore, which will result in dividend proceeds of ~USD 2.1 billion to VRL. Besides, during first half of the ongoing fiscal, VRL raised USD 1.3 billion from banks, which, along with dividends receipts, supported debt servicing in the first nine months of the fiscal. Dividends from Vedanta will continue to help VRL meet its interest obligation. That said, VRL faces near to medium term refinancing risk with scheduled debt obligation of around USD 3 billion in fiscal 2024 (including upcoming bond maturity of USD 900 million between April and May 2023) and ~USD 2.9 billion in fiscal 2025. CRISIL Ratings believes VRL is expected to refinance or partly repay the same in a timely manner, supported by healthy operating profitability of Vedanta and increased shareholding of the promoters in the company. However, any delay in timely refinancing of the debt at VRL, going ahead, will be a key monitorable

 

As per the capital allocation policy of Vedanta and as articulated by the management, potential strategic growth acquisition of Bharat Petroleum Corporation Ltd (BPCL), if it happens, and proposed entry in the semi-conductor and display production business (recently formed joint venture between the Vedanta group and Foxconn) will not be done through Vedanta or its parent and will not be linked with the balance sheets of Vedanta or its parent entities. However, further developments on this front will remain a monitorable.

 

The ratings continue to reflect the strong business risk profile of Vedanta, driven by its diversified presence across commodities, cost-efficient operations in the domestic zinc and oil and gas businesses, improving profitability in the aluminium business and large scale of operations. These strengths are partially offset by high debt, large capital expenditure (capex) and dividend and susceptibility to volatility in commodity prices and regulatory risk.

 

CRISIL Ratings has withdrawn its rating on non-convertible debentures (NCDs) aggregating Rs 750 crore (refer to annexure 'Details of Rating Withdrawn' for details) on receipt of independent confirmation of their redemption. Furthermore, CRISIL Ratings has also withdrawn its rating on proposed NCDs of Rs 74 crore on receiving confirmation from the company, as the NCDs same was unutilised proposed NCDs. The ratings are withdrawn in line with CRISIL Ratings’ rating withdrawal policy.

Analytical Approach

To arrive at its ratings, CRISIL Ratings has combined the business and financial risk profiles of Vedanta and its subsidiaries, collectively known as the Vedanta group, as they have operational and financial linkages. Key subsidiaries include Hindustan Zinc Ltd (HZL; 'CRISIL AAA/Stable/CRISIL A1+’); the group's zinc business in Namibia and South Africa (termed Zinc International); Bharat Aluminium Company Ltd (Balco; 'CRISIL A1+’); Talwandi Sabo Power Ltd (‘CRISIL AA (CE)/Stable/CRISIL A1+(CE)’); and ESL Steel Ltd (‘CRISIL AA/Stable/CRISIL A1+’).

 

CRISIL Ratings has included the debt of VRL (estimated at around USD 7.9 billion {excluding outstanding ICL} or around Rs 65,500 crore as on September 30, 2022) while calculating the adjusted debt. This is because despite no legal recourse of VRL’s debt holders to Vedanta, this debt needs to be serviced using the dividend outflow from Vedanta or refinanced, based on the implicit strength of the investments held by VRL, primarily Vedanta.

 

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description

Strengths:

• Diversified business risk profile

The Vedanta group is present in various businesses spanning zinc, lead, silver, aluminium, oil and gas, iron ore, power and steel. The group is among the largest producers in all these segments and, thus, commands a strong market position in India. A well-diversified business risk profile cushions it from commodity-specific cyclicality and risks.

 

• Low-cost position of key businesses

The domestic zinc, lead and silver businesses are supported by low cost of production, large reserve and continued resource addition. Profitability in the oil and gas business is aided by low operating cost and a business model that ensures recovery of capex. Cash flow in this business will be driven by capex-led improvement in volume over the medium term.

 

The Delhi High Court, through its order dated March 26, 2021, had ruled in favour of the government in the dispute over additional 10% profit petroleum demanded by the government under the profit-sharing contract (PSC) extension policy for the Rajasthan block. This had resulted in increased cash outflow toward profit sharing at 60% with Government of India. While the court order shall result in reduced profit margin for the oil and gas business, profitability should still remain healthy. Notably, the government was providing only short-term extensions for continuity of operations in the Rajasthan block.  However, the government has extended the PSC contract for the Rajasthan block during fiscal 2023, for 10 years, effective post May 2020. This shall remove the element of uncertainty towards continuity of operations for the Rajasthan block. Furthermore, additional claim of dues related to disallowed cost, raised by the Directorate General of Hydrocarbons, is under arbitration.

 

• Robust operating profitability in the aluminium business, though witnessing moderation in fiscal 2023 due to higher power cost and lower realization, expected to improve going ahead

Improved linkage coal sourcing (over 70% in fiscals 2021 and 2022 from 45% in fiscal 2018) reduced coal prices, while lower cost of imported alumina had improved cost efficiency for the aluminium business (Ebitda of over USD 525 per tonne during fiscal 2021 against less than USD 150 per tonne in fiscal 2020). With improved production rates, continued cost efficiency and strong aluminium realisation, Ebitda per tonne for the aluminium business of Vedanta further increased to over USD 1,000 in fiscal 2022.

 

However, in the first half of fiscal 2023, increased power cost due to lower materialisation of linkage coal and higher coal cost in the market (power cost increasing to more than $1100/tonne in the first half, compared with around $800/tonne in the fourth quarter of fiscal 2022) led to increased CoP to $2,541/tonne as compared to $1,588/tonne in the first half of fiscal 2022 (average CoP was $1,858/tonne in fiscal 2022).This, along with lower aluminium realisations, resulted in reduced Ebitda margin for the aluminium business with Ebitda per tonne declining to around USD 320 per tonne during the first half of fiscal 2023 from more than USD 1,000 in fiscal 2022.

 

However, with gradual improvement in domestic coal availability (linkage coal materialization is understood to have improved to more than 90% post second quarter of the fiscal), and operationalisation of captive coal mines at Jamkhani coal mine, Radhikapur (west) coal block and Kuraloi (A) north coal block in Odisha during fiscal 2023 and fiscal 2024, and the focus on increasing local bauxite and alumina sourcing is are expected to enhance cost efficiency over the medium term. Moreover, Vedanta has emerged as the highest bidder for Ghorgharpalli and its Dip Extension Coal Block in Sundargarh, Odisha, which will improve coal security for the aluminium business. This, along with ongoing expansion in the refinery capacity to 5 million tonne per annum (MTPA) from 2 MTPA, should enhance operating efficiency next fiscal onwards. Any material delay in structural improvement in operational integration of the aluminium business resulting in lower-than-expected improvement growth in the profitability of the business segment will remain a key monitorable.

 

• Expected strong volume growth expected over the medium term with capital allocation towards value-accretive zinc, aluminium and oil and gas businesses

Increased mined metal capacity of 1.2 MTPA in domestic zinc, along with ramp-up of Gamsberg’s operations in Zinc International, will support the ramp up in volume. Furthermore, expected addition of new wells and surface facilities during fiscal 2023 should increase volume for the oil and gas business over the medium term. Strong volume growth is likely to make the overall business risk profile more resilient. Vedanta is undertaking brownfield expansion of its aluminium smelter capacity by 414 kilo tonne per annum (under Balco). Expansion of aluminium refining capacities to 5 MTPA from the existing 2 MTPA is expected to be completed by fiscal 2024. This would further support volume growth over the medium term.

 

Weaknesses:

• Large dividend payout to support increasing debt at VRL along with significant capex, resulting in high leverage over the past years; though expected to improve going ahead

Continued assistance through dividend payout to the parent, VRL, to support the latter’s debt has resulted in significant cash outflow to minority shareholders. Though Vedanta has undertaken significant annual capex (about Rs 13,500 crore and Rs 9,000 crore in fiscals 2022 and 2021, respectively) more than proportionate improvement in profitability had improved net leverage to 2.2 times as on March 31, 2022 (3.1 times in the previous fiscal). Capex (incl. sustenance capex) increased to around Rs 8,500 crore in H1-FY23 and is expected to increase further over the medium term (Rs 15,000-20,000 crore in fiscals 2023 and 2024, largely towards growth capex in the aluminium, zinc and oil and gas businesses. This along with moderation in operating profitability and higher than expected dividend payout is expected to result in increased leverage this fiscal. However net leverage is expected to reduce to below 2.5x next fiscal with expected improvement in profitability and continued focus on deleveraging. However, profitability remains susceptible to volatility in the prices of metals and oil and gas. Any material acquisition or higher-than-expected cash outflow to support VRL will remain a key monitorable.

 

• Exposure to changes in regulations

The businesses are vulnerable to regulatory risk. The copper smelting plant at Thoothukkudi, Tamil Nadu, has been shut since May 2018 following a directive from the Tamil Nadu Pollution Control Board. Suspension of iron ore mining operations in Goa currently, and in Karnataka in the past, have adversely impacted the iron ore business. Furthermore, the March 2021 order of the Delhi High Court on PSC extension, ruling against the company, will result in reduced profit margin for the oil and gas business.

Liquidity: Strong

Cash balance was Rs 26,453 crore (net of inter-company loans to VRL) as on September 30, 2022. However, a part of the cash is held by HZL, which is accessed through dividends and thus results in outflow towards minority shareholders. Liquidity is also supported by a significant, unutilised bank limit (around Rs 12,000 crore as on September 30, 2022).

 

Expected cash accrual of around Rs 30,000 crore (pre-dividend payout) in fiscals 2023 and 2024, should comfortably cover Vedanta’s term debt obligation of 4,800 crore for H2-FY23 and Rs 9,400 crore for full FY24. In addition, flexibility towards capex supports liquidity. Vedanta may also look to refinance a significant portion of its principal debt obligation in fiscal 2023 and 2024, based on its strong refinancing track record.

 

The parent, VRL, has an annual interest expense of around Rs 5,500 crore (around USD 650-700 million) towards its outstanding debt, which will be mainly serviced through dividends received from Vedanta. The debt repayments of the parent in fiscal 2023 are being serviced through a mix of refinancing and dividend received from Vedanta, including scheduled repayments of ~ USD 0.6 billion in second half of the current fiscal. That said, VRL, has near to medium-term refinancing risk with scheduled debt repayment of ~USD 3.0 billion in fiscal 2024 (including upcoming bond maturity of USD 900 million in April and May 2023) and USD 2.9 billion in fiscal 2024. However, VRL is expected to refinance/part repay the same in a timely manner, and bond repayment scheduled in April and May 2023 is expected to be refinanced/part paid, latest by March 2023 or early April 2023. The debt reduction at VRL will be supported by increased access to cash accrual of Vedanta after the increase in shareholding and the successful refinancing track record of VRL. However, any delay in expected timelines for refinancing or repayment for VRL’s debt will be key rating sensitivity factor.

 

Environment, social, and governance (ESG) profile

Vedanta has a dominant position in the metals and mining sector and has diversified its business risk profile with presence across multiple commodities such as zinc, aluminium, oil and gas, and iron ore. However, for the ESG assessment, CRISIL Ratings has evaluated Vedanta’s top three business segments (zinc, aluminium and oil and gas) which, on a combined basis, contribute more than 85% to the consolidated operating profit.

 

The ESG profile supports the already strong credit risk profile of Vedanta. The metal and mining sector has a significant impact on the environment owing to high greenhouse gas (GHG) emissions, waste generation and water consumption. This is because of the energy-intensive manufacturing process and its high dependence on natural resources such as coal. The sector also has a significant social impact because of its large workforce across its operations and value chain partners, and also as its operations affect the local community and involve health hazards.

 

Key ESG highlights:

• Vedanta aims to become carbon neutral by 2050 or sooner—it envisages 20% reduction in GHG emissions intensity by 2025 from the 2012 baseline, and 25% reduction in its absolute carbon emission intensity by 2030. During fiscal 2022, Vedanta reduced GHG emissions to 62.83 million TCo2e.
• The company has been improving its water recycling rate and recycled 30.6% of total water consumed in fiscal 2022. It has set a target to achieve net water positivity by 2030. The company recycled 98% of its high-volume, low-toxicity waste in fiscal 2022 (94% in fiscal 2021), and targets zero net waste by 2025.
• The loss time injury frequency rate for the zinc business was 0.79 in fiscal 2022 against 0.97 in the previous fiscal. It was 0.41 for the aluminum business, 0.85 for the iron ore business and 0.80 for the steel business. The company targets zero harm and fatalities.
• Gender diversity is 11.54% and the company aims to increase the share of women employees to 20% by 2030.
• The governance structure is characterised by 50% of the board comprising independent directors (none with tenure exceeding 10 years), split in chairman and CEO positions, dedicated investor grievance redressal mechanism and healthy disclosures.
• Few regulatory issues, mainly related to environmental concerns, have led to suspension of some businesses (copper business in Tamil Nadu and iron ore mining in Goa due to state-wide ban on mining in Goa) in the past few years. These events have also had social impact mainly due to job losses. These matters are sub-judice.

 

There is growing importance of ESG among investors and lenders. The commitment of Vedanta to ESG principles will play a key role in enhancing stakeholder confidence, given its high share of market borrowings in its overall debt and access to both domestic and foreign capital markets (mainly by VRL).

Outlook: Stable

The credit risk profile should continue to benefit from healthy commodity prices, low cost of production across key businesses, and expected volume growth resulting in high operating profitability. Likely increase in profitability and utilization of free cash flow towards debt reduction should support deleveraging and sustained improvement in financial risk profile.

Rating Sensitivity factors

Upward factors

• Higher than expected Ebitda on account of ramp-up in volume and continued cost efficiency across businesses, and improving business resilience
• Sustained deleveraging with material reduction in consolidated net debt, resulting in sustenance of net debt to Ebitda ratio below 1.8 times

 

Downward factors

• Significantly lower-than-expected Ebitda because of high cost of production, slower volume ramp-up or lower realisation
• Delay in meaningful correction in financial leverage with net debt to Ebitda ratio sustaining above 2.5-2.7 times
• Sustained negative free cash flow (post capex) or any incremental investment or support to VRL or Volcan Investments Ltd

About the Company

VRL holds 69.7% stake in Vedanta and has diversified operations across metals, mining, power, and oil and gas.

 

Capacities	Location
2.3 MTPA aluminium smelters in VDL and Balco	Jharsuguda, Odisha
2.0 MTPA alumina refinery	Lanjigarh, Odisha
1,980 megawatt independent power plant	Talwandi Sabo, Punjab
1.2 MTPA zinc/silver mines and 0.9 MTPA zinc smelters 5.6 MTPA zinc mines and 290 kilo tonne zinc smelters	Rajasthan South Africa, Namibia
1,194 million barrels of oil equivalent oil and gas reserves	Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Assam, Tamil Nadu and Tripura
1.5 MTPA long steel rolling in Electrosteel Steel (held 95.5%)	Bokaro, Jharkhand

 

Key Financial Indicators

Particulars	Unit	2022	2021
Operating income	Rs crore	131,192	89,135
Profit after tax (PAT)	Rs crore	23,709	15,032
PAT margin	%	18.1	16.9
Adjusted debt / adjusted networth	Times	1.59	1.54
Interest coverage	Times	9.45	5.73

Note: These reflect CRISIL Ratings-adjusted consolidated financials

*Includes non-cash exceptional expense on account of impairment of assets in fiscal 2020.

Any other information: Not applicable

Annexure - Details of Instrument(s)

ISIN	Name of instrument	Date of allotment	Coupon rate (%)	Maturity date	Issue size (Rs crore)	Complexity level	Rating assigned with outlook
INE205A07196	Debentures	25-Feb-20	9.20%	25-Feb-30	2000	Simple	CRISIL AA/Stable
INE205A07212	Debentures	31-Dec-21	7.68%	31-Dec-24	1000	Simple	CRISIL AA/Stable
INE205A07220	Debentures	29-Jun-22	8.74%	29-Jun-32	4089	Simple	CRISIL AA/Stable
NA	Debentures%	NA	NA	NA	2837	Simple	CRISIL AA/Stable
NA	Commercial paper	NA	NA	7-365 days	10000	Simple	CRISIL A1+
NA	Fund-based facilities^	NA	NA	NA	8,004.5	Not applicable	CRISIL AA/Stable
NA	Non-fund-based limit#	NA	NA	NA	19,405		CRISIL A1+
NA	Non-fund-based limit*	NA	NA	NA	500		CRISIL AA/Stable
NA	Foreign currency term loan$	4-Mar-20	NA	31-Mar-23	201		CRISIL AA/Stable
NA	Term loan	30-Sep-18	NA	30-Dec-28	383		CRISIL AA/Stable
NA	Term loan	25-Jul-14	NA	30-Sep-25	937		CRISIL AA/Stable
NA	Term loan	27-Jul-18	NA	30-Sep-24	192		CRISIL AA/Stable
NA	Term loan	14-Aug-18	NA	14-Nov-23	300		CRISIL AA/Stable
NA	Term loan	31-Oct-20	NA	31-Jan-25	81		CRISIL AA/Stable
NA	Term loan	3-Aug-18	NA	31-Mar-28	2531		CRISIL AA/Stable
NA	Term loan	26-Aug-21	NA	30-Sep-26	1770		CRISIL AA/Stable
NA	Term loan	30-Aug-21	NA	30-Sep-26	455		CRISIL AA/Stable
NA	Term loan	15-Sep-21	NA	30-Sep-26	455		CRISIL AA/Stable
NA	Term loan	28-Sep-21	NA	30-Sep-26	1070		CRISIL AA/Stable
NA	Term loan	28-Dec-21	NA	30-Sep-27	7,638		CRISIL AA/Stable
NA	Term loan	31-Mar-22	NA	31-Mar-25	324		CRISIL AA/Stable
NA	Term loan	12-Mar-20	NA	30-Jun-25	475		CRISIL AA/Stable
NA	Term loan	14-Dec-21	NA	30-Sep-26	705		CRISIL AA/Stable
NA	Term loan	31-Dec-21	NA	30-Sep-27	975		CRISIL AA/Stable
NA	Term loan	31-Mar-22	NA	31-Mar-28	1000		CRISIL AA/Stable
NA	Term loan	30-Nov-19	NA	31-Mar-25	350		CRISIL AA/Stable
NA	Term loan	29-Apr-22	NA	31-Dec-26	1200		CRISIL AA/Stable
NA	Term loan	30-Jun-22	NA	31-Mar-27	1274		CRISIL AA/Stable
NA	Term loan	18-Jul-22	NA	30-Jun-27	980		CRISIL AA/Stable
NA	Term loan	26-Sep-22	NA	31-Mar-24	1000		CRISIL AA/Stable
NA	Term loan	24-Nov-22	NA	30-Nov-24	300		CRISIL AA/Stable
NA	Term loan	28-Nov-22	NA	30-Nov-27	500		CRISIL AA/Stable
NA	Term loan	08-Dec-22	NA	31-Dec-29	750		CRISIL AA/Stable

^ Fund-based limit is completely interchangeable with non-fund-based limit

#Non-fund-based limit of Rs 2000 crore is interchangeable with fund-based limit

* Capex letter of credit limit is interchangeable with operational non-fund-based limit

$ Foreign Currency Non-Resident (FCNR) loans

% Yet to be placed

 

Annexure - Details of rating withdrawn

ISIN	Name of instrument	Date of allotment	Coupon rate (%)	Maturity date	Issue size (Rs crore)	Complexity level
INE205A07170	Debentures	9-Dec-19	9.20%	9-Dec-22	750	Simple
NA	Debentures%	NA	NA	NA	74	Simple

%Yet to be placed

Annexure – List of entities consolidated

Name of entity	Type of consolidation	Rationale for consolidation
Hindustan Zinc Ltd	Full consolidation	Significant financial and operational linkages
Bharat Aluminium Company Ltd	Full consolidation	Significant financial and operational linkages
MALCO Energy Ltd	Full consolidation	Significant financial and operational linkages
Talwandi Sabo Power Ltd	Full consolidation	Significant financial and operational linkages
Sesa Resources Ltd	Full consolidation	Significant financial and operational linkages
Sesa Mining Corporation Ltd	Full consolidation	Significant financial and operational linkages
Sterlite Ports Ltd	Full consolidation	Significant financial and operational linkages
Maritime Ventures Pvt Ltd	Full consolidation	Significant financial and operational linkages
Goa Sea Port Pvt Ltd	Full consolidation	Significant financial and operational linkages
Vizag General Cargo Berth Pvt Ltd	Full consolidation	Significant financial and operational linkages
Paradip Multi Cargo Berth Pvt Ltd	Full consolidation	Significant financial and operational linkages
Copper Mines of Tasmania Pty Ltd	Full consolidation	Significant financial and operational linkages
Thalanga Copper Mines Pty Ltd	Full consolidation	Significant financial and operational linkages
Monte Cello B V	Full consolidation	Significant financial and operational linkages
Bloom Fountain Ltd	Full consolidation	Significant financial and operational linkages
Twinstar Energy Holding Ltd	Full consolidation	Significant financial and operational linkages
Twinstar Mauritius Holding Ltd	Full consolidation	Significant financial and operational linkages
Western Clusters Ltd	Full consolidation	Significant financial and operational linkages
Sterlite (USA) Inc	Full consolidation	Significant financial and operational linkages
Fujairah Gold FZC	Full consolidation	Significant financial and operational linkages
THL Zinc Ventures Ltd	Full consolidation	Significant financial and operational linkages
THL Zinc Ltd	Full consolidation	Significant financial and operational linkages
THL Zinc Holding B V	Full consolidation	Significant financial and operational linkages
THL Zinc Namibia Holdings (Proprietary) Ltd	Full consolidation	Significant financial and operational linkages
Skorpion Zinc (Proprietary) Ltd	Full consolidation	Significant financial and operational linkages
Skorpion Mining Company (Proprietary) Ltd	Full consolidation	Significant financial and operational linkages
Namzinc (Proprietary) Ltd	Full consolidation	Significant financial and operational linkages
Amica Guesthouse (Proprietary) Ltd	Full consolidation	Significant financial and operational linkages
Rosh Pinah Healthcare (Proprietary) Ltd	Full consolidation	Significant financial and operational linkages
Black Mountain Mining (Proprietary) Ltd	Full consolidation	Significant financial and operational linkages
Vedanta Lisheen Holdings Ltd	Full consolidation	Significant financial and operational linkages
Vedanta Lisheen Mining Ltd	Full consolidation	Significant financial and operational linkages
Killoran Lisheen Mining Ltd	Full consolidation	Significant financial and operational linkages
Killoran Lisheen Finance Ltd	Full consolidation	Significant financial and operational linkages
Lisheen Milling Ltd	Full consolidation	Significant financial and operational linkages
Vedanta Exploration Ireland Ltd	Full consolidation	Significant financial and operational linkages
Lisheen Mine Partnership	Full consolidation	Significant financial and operational linkages
Lakomasko BV	Full consolidation	Significant financial and operational linkages
Cairn India Holdings Ltd	Full consolidation	Significant financial and operational linkages
Cairn Energy Hydrocarbons Ltd	Full consolidation	Significant financial and operational linkages
Cairn Exploration (No. 2) Ltd	Full consolidation	Significant financial and operational linkages
Cairn Energy Gujarat Block 1 Ltd	Full consolidation	Significant financial and operational linkages
Cairn Energy Discovery Ltd	Full consolidation	Significant financial and operational linkages
Cairn Energy India Pty Ltd	Full consolidation	Significant financial and operational linkages
CIG Mauritius Holdings Pvt Ltd	Full consolidation	Significant financial and operational linkages
CIG Mauritius Pvt Ltd	Full consolidation	Significant financial and operational linkages
Cairn Lanka (Pvt) Ltd	Full consolidation	Significant financial and operational linkages
Cairn South Africa Proprietary Ltd	Full consolidation	Significant financial and operational linkages
Avanstrate (Japan) Inc (ASI)	Full consolidation	Significant financial and operational linkages
Avanstrate (Korea) Inc	Full consolidation	Significant financial and operational linkages
Avanstrate (Taiwan) Inc	Full consolidation	Significant financial and operational linkages
Sesa Sterlite Mauritius Holdings Ltd	Full consolidation	Significant financial and operational linkages
Vedanta Star Ltd	Full consolidation	Significant financial and operational linkages
RoshSkor Township (Pty) Ltd	Equity method	Proportionate consolidation
Gaurav Overseas Pvt Ltd	Equity method	Proportionate consolidation
Rampia Coal Mines and Energy Pvt Ltd	Equity method	Proportionate consolidation
Madanpur South Coal Company Ltd	Equity method	Proportionate consolidation
Goa Maritime Pvt Ltd	Equity method	Proportionate consolidation